LONCOR INCREASES INTEREST IN ADUMBI MINING TO 76.29%
TORONTO, March 25, 2020 (GLOBE NEWSWIRE) -- Loncor Resources Inc. ("Loncor" or the "Company") (TSX: "LN"; OTCQB: "LONCF") announces that it has acquired an
additional 5.04% interest in its subsidiary Adumbi Mining SARL (“Adumbi Holdco”) pursuant to a private transaction with one of the former minority shareholders of Adumbi Holdco.
This acquisition increases Loncor’s interest in Adumbi Holdco from 71.25% to 76.29%. “Loncor continues to consolidate its dominant position in the Ngayu Goldbelt. Over the next
twelve months we intend to drill the Adumbi gold deposit and several other highly prospective areas of the Imbo license,” said Founder and CEO, Arnold Kondrat.
Adumbi Holdco, which recently changed its name from KGL Somituri SARL, holds six exploitation licences in the Ngayu Greenstone Belt including the Imbo exploitation licence, where an Inferred Mineral Resource of 1.675 million ounces of gold (20.78 million tonnes grading 2.5 g/t Au,) was outlined in January 2014 by independent consultants Roscoe Postle Associates Inc on three separate deposits, Adumbi, Kitenge and Manzako. 76.29% of this gold resource is now attributable to Loncor.
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About Loncor Resources Inc.
Loncor is a Canadian gold exploration company focussed on the Ngayu Greenstone Belt in the Democratic Republic of the Congo (the “DRC”). The Loncor team has over two decades
of experience of operating in the DRC. Ngayu has numerous positive indicators based on the geology, artisanal activity, encouraging drill results and an existing gold resource base. The
area is 200 kilometres southwest of the Kibali gold mine, which is operated by Barrick Gold (Congo) SARL (“Barrick”). In 2019, Kibali produced record gold production of
814,000 ounces at “all-in sustaining costs” of US$693/oz. Barrick has highlighted the Ngayu Greenstone Belt as an area of particular exploration interest and is moving towards earning 65% of
any discovery in 1,894 km2 of Loncor ground that they are exploring. As per the joint venture agreement signed in January 2016, Barrick manages and funds exploration on the said
ground at the Ngayu project until the completion of a pre-feasibility study on any gold discovery meeting the investment criteria of Barrick. In a recent announcement Barrick highlighted six
prospective drill targets and are moving towards confirmation drilling in 2020. Subject to the DRC’s free carried interest requirements, Barrick would earn 65% of any discovery with Loncor
holding the balance of 35%. Loncor will be required, from that point forward, to fund its pro-rata share in respect of the discovery in order to maintain its 35% interest or be diluted.